Answer:
1. Reputation.
Apple and IBM are big companies which is why their reputation was able to survive the bribery charges. You are most likely not as big as either of these companies so if you are charged with bribery, your reputation might not be able to recover like theirs did.
It is always best to be associated with a good reputation. A good reputation gives you customers who will be loyal because they appreciate the integrity you have. You should not throw this away by bribing people.
2. Consequences.
It is because Apple and IBM are so big that they were able to settle the bribery charge with the Courts. Smaller companies or people that have lesser effects on the financial system might find that their punishments will be more severe to act as a deterrent.
Answer:
Bad Debt expense = Allowance for uncollectible debit + (Estimated uncollectibles)
= 1,900 + (15% * 116,000)
= $19,300
1.
Dec. 31 DR Bad debt expenses $19,300
CR Allowance for Uncollectable $19,300
2. Balance Sheet;
= 116,000 * 15%
= $17,400
Income Statement;
= $19,300
3. Net realizable value
= Accounts receivable - Estimated uncollectibles
= 116,000 - 17,400
= $98,600
Answer:
C. the market demand curve understates the relative importance of the product and resources are therefore underallocated to its production.
Explanation:
Positive external benefits refer to third party positive side effects, above & beyond private marginal benefit to the concerned consumer.
Eg : Education - Its consumption not only affects the concerned person, but the positive trickle down to the people & society around.
Personal consumption decisions are based on : equalisation - of private marginal benefit (demand) curve & private marginal cost curve. However, goods having positive external benefits have real marginal benefit curve increased over private benefit curve, by the extent of extra marginal social benefit.
So, market demand (based on private marginal benefit) curve understates the importance of product, and resources are therefore underallocated to its production (due to undervaluation of demand).
Answer:
Overhead refers to the ongoing business expenses not directly attributed to creating a product or service. It is important for budgeting purposes but also for determining how much a company must charge for its products or services to make a profit
Explanation:
Answer:
Consider the following calculations
Explanation:
A. Dividend per Share = Dividend Payout Ratio * Earnings Per Share
Putting the values given to calculate dividend per share we get,
Stages DPS = Payout Ratio * EPS DPS
Stage 1 =0.00*$0.30 $0
Stage 2 = 0.13*1.95 $0.25
Stage 3 =0.31 * $ 2.80 $0.868
Stage 4 = 0.56*$3.40 $1.90
b. Calculation of Investors After Tax Income from Cash Dividend:-
Cash Dividend = Number of Shares * DPS in Stage IV
= 290 * $ 1.90
= $552.16
After Tax Income = DIvidend ( 1 - Tax Rate)
= $ 552.16 ( 1- 0.15)
= $ 469.34
C:- In Stage II and Stage III for Growth & Expansion respectively, the firm is likely to utilise stock dividend or stock split.
